Skechers Expects Supply Chain Constraints Into 2022

Global footwear brand Skechers kept its 2021 momentum going with third-quarter sales of $1.55 billion for the three-month period that ended Sept. 30, up almost 20% from the same time a year ago, even as supply chain bottlenecks continue to suppress inventory.

In the quarter, Skechers’ direct-to-consumer (D2C) sales jumped 44.1% and wholesale sales were up 10.5%, the company said on Friday (Oct. 29).

“The record quarter was the result of double-digit improvements in both our domestic and international businesses compared to the third quarter of 2020, reflecting the relevancy of our product globally and a normalizing retail environment,” David Weinberg, chief operating officer of Skechers, said in the company announcement.

Skechers’ international growth can largely be attributed to double-digit increases in the company’s distributor sales and robust performances in China, India and other global markets.

“As we look to the fourth quarter and into the first half of 2022, we believe supply chain constraints will remain a challenge, although we are beginning to see progress in key global ports, especially in Europe and other international markets,” said Weinberg.

Skechers’ third-quarter sales were up 19.2% on the back of a 20.1% jump in domestic sales and an 18.6% increase in international sales, driven by increases in both D2C and wholesale.

“Supply chain constraints challenged our normal delivery speeds, but our teams worked tirelessly to move inventory as quickly as possible, delivering to our stores and partners in an effort to keep up with the demand,” Skechers CEO Robert Greenberg said in the company announcement.

Skechers expects to reach sales between $6.15 billion and $6.2 billion for fiscal 2021, with projected sales of between $1.51 billion and $1.56 billion in the fourth quarter of the year.

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Atmos, which had $175 million in revenue in fiscal 2020, makes 60% of its sales through digital channels. WSS, which had approximately $425 million in revenue last fiscal year, has 93 off-mall stores across California, Texas, Arizona and Nevada. Both areas had been lacking in Foot Locker’s past.